IPV leads early-stage investment in FMCG distribution platform Dropshop

FMCG distribution platform Dropshop has raised Rs 9.3 crore in a pre-Series A round led by Inflection Point Ventures. Existing investors Axilor Ventures and The Chennai Angels also participated in the round with 42.vc joining the round via AngelList.

The funds will be used for strengthening the product and scaling up of operations for handling more FMCG brands and entering new markets such as Chennai and Hyderabad.

“FMCG companies are often faced with a critical issue of increasing margins without burdening their customers. Traditionally, they have adopted the approach of building distribution and last mile networks in house. Given the geography of India, it is not viable business wise to create expensive distribution networks.